Cars24 reported its consolidated financial results for the fiscal year ended March 2025 (FY25), revealing a widening net loss of ₹543 crore.
This represents a 9% increase in losses compared to the ₹498 crore loss reported in FY24. The results signal a challenging year for the SoftBank-backed unicorn, as it faced a “double whammy” of declining revenues and rising operational costs.
FY25 Financial Performance: Key Metrics
The used-car marketplace saw its scale contract for the first time in several years, primarily due to a slowdown in its core vehicle sales business.
| Metric | FY25 (Actuals) | FY24 (Previous) | YoY Change |
| Gross Operating Revenue | ₹6,233 Crore | ₹6,910 Crore | -10% |
| Total Income | ₹6,358 Crore | ₹7,035 Crore | -9.6% |
| Net Loss | ₹543 Crore | ₹498 Crore | +9% |
| Total Expenditure | ₹6,898 Crore | ₹7,488 Crore | -7.9% |
Why Revenue and Losses Diverged
While Cars24 managed to cut its overall spending, the sharp drop in top-line revenue outpaced those savings, leading to a poorer bottom line.
1. The Slump in Car Sales
Revenue from the core business—selling cars via auction and retail—dropped 11% to ₹5,733 crore. This was attributed to a strategic shift where the company began prioritizing high-margin retail sales over high-volume (but lower-margin) wholesale auctions.
2. Rising Employee Costs
Despite a 25% cut in marketing and advertising spend (down to ₹106 crore), employee benefit expenses surged 15% to ₹604 crore. This spike was driven by investments in high-level tech talent to build out the company’s “AI-led” inspection and pricing engines.
3. The “Financial Services” Bright Spot
While car sales struggled, the lending vertical (Loans24) showed resilience. Income from financial services, mainly interest on loans, contributed roughly ₹215 crore. Loan disbursements through the platform reportedly grew as more consumers sought credit for used-car purchases amidst rising vehicle prices.
Strategic Pivot & Recovery in FY26
Despite the weak FY25 numbers, Cars24’s leadership has pointed to a “solid recovery” in the current fiscal year (FY26).
- H1 FY26 Performance: In the first half of the 2026 fiscal year (April–Sept 2025), adjusted net revenue jumped 18% to ₹651 crore, and EBITDA losses were slashed by 36%.
- GenAI Integration: The company has invested ₹95 crore in technology, using Generative AI to automate document verification and customer calls, which has reportedly reduced car inspection times by 30%.
- Acquisition Spree: To strengthen its “ownership ecosystem” before a planned listing, Cars24 recently acquired CarInfo (vehicle management) and Team-BHP (automotive community).
The IPO Countdown
Following the release of these results, CEO Vikram Chopra confirmed that Cars24 is preparing for an Initial Public Offering (IPO) in India within the next 6 to 12 months (targeting late 2026 or early 2027). The company aims to reach a 10% market share in India’s organized used-car market over the next three years.
